Corporation Y, which is located in the USA, sold merchandise to Poland on credit in a transaction that was settled in Polish Zlotis and will be paid early next year. And you are preparing your financial statements for the current year and the staff in the accounting department is unclear on which method to use to present the balances in dollars. What procedure must be followed to determine the amount to be reported in the financial statement? Remeasurement Currency transfer Coversion Translation
Corporation Y, which is located in the USA, sold merchandise to Poland on credit in a transaction that was settled in Polish Zlotis and will be paid early next year. And you are preparing your financial statements for the current year and the staff in the accounting department is unclear on which method to use to present the balances in dollars. What procedure must be followed to determine the amount to be reported in the financial statement?
- Remeasurement
- Currency transfer
- Coversion
- Translation
Translation refers to the process that must be used when converting the balances of transactions that were conducted in a different currency into dollars. The process of translating a company's assets, liabilities, income (profit), and losses that are recorded in a foreign currency into the company's base currency is referred to as translation.
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